DOW JONES NEWSWIRES
Align Technology Inc. (ALGN) said Danaher Corp. (DHR) will
receive a roughly 10% stake in the dental products company as part
of a patent settlement with one of the industrial conglomerate's
subsidiaries, Ormco Corp.
The companies agreed to end patent litigation and enter an
exclusive seven-year strategic collaboration to develop and market
an orthodontic product using Align's clear removable
teeth-straightening appliances and Ormoco's orthodontic brackets
and arch wires systems. Both companies will retain and receive
patents in their respective fields related to the jointly developed
products.
In June, a jury found that Align's process for creating
representations of teeth used in creating its aligners infringed on
several claims of Ormco patents.
The settlement includes the issuance of about 7.6 million shares
in Align, valued at about $77 million based on Friday's closing
price, along with a cash payment of about $13 million.
Danaher's shares closed at $60.10 Friday. Neither company's
shares traded premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com